IGT beats analysts' forecasts with $1.06B in revenue for Q1

International Game Technology (IGT) announced on Tuesday first-quarter net income of $23 million on revenue of $1.06 billion. On a per-share basis, the London-based company said it had a profit of 11 cents; and earnings, adjusted for non-recurring costs, came to 49 cents per share. The results, which exceeded Wall Street expectations, were bolstered by an 8% Global Lottery same-store sales growth and double-digit revenue growth in Global Gaming and PlayDigital.

Revenue for the three-month period, which was up slightly by 0.8% from the same quarter last year, was above what four analysts surveyed by Zacks expected, which was $1.03 billion. But the financial results also exceeded expectations for IGT as well, with CEO Vince Sadusky stating the quarter has helped the business to affirm its full-year outlook.

“Our first quarter results exceeded expectations and put us firmly on track to achieve our full-year outlook,” said the executive, crediting the quarter’s success to the performances in the Global Lottery, Global Gaming and PlayDigital segments. While Global Lottery fell by 8.2% to $624 million, due to the sale of IGT’s Italian commercial services business, revenues for Global Gaming and Play Digital saw double-digit growth, up by 17.2% and 17%, respectively.

“Compelling innovation and sustained strength in customer and player demand are fuelling momentum across our Global Lottery, Global Gaming and PlayDigital segments,” added Sadusky. “This is clear in the excellent key performance indicators achieved in the quarter. We believe the focused execution of our strategy to Grow, Innovate, and Optimize should create significant value as we progress toward our 2025 goals."

In its report, the company broke down revenue for the period by segment, noting it hit $381 million for the Global Gaming segment, while revenue for PlayDigital topped $55 million. By location, the US and Canada saw revenue up by 11.4% to $666 million, while Italy dropped by 18.4%, partly credited to the aforementioned sale in this market. Service revenue made up most of the Q1 revenue at $846 million, while product sales made up the remaining $215 million. 

Along with its financial report, IGT shared its projections for the second quarter of the year. The firm expects $1 billion in revenue and an operating income margin of 22-24%. And as for the full year, revenue is expected to lie between $4.1 billion and $4.3 billion, with cash from operations expected to hit between $900 million and $1 billion.

"The strong start to the year includes significant cash flow generation and further improvement in our credit profile," said Max Chiara, CFO of IGT. "The continued improvement in net debt leverage reinforces our conviction in accomplishing the lower end of the 2.5x - 3.5x target range by 2025. We are focused on enhancing our financial flexibility, being operationally agile, and remaining disciplined with costs, all of which should enable the achievement of our 2025 margin and cash flow targets even in the current uncertain macroeconomic context."

See IGT's full Q1 2023 report here.